The Beauty of Being Iceland

Under the EU’s Markets in Financial Instruments Directive, the EU allowed the external countries of Iceland, Liechtenstein, and Norway to enter the ‘levelled’ EU financial markets, which Iceland took advantage of, to within an inch of its financial life.

When the Icelandic banks collapsed, the EU tried to make the Icelandic government impose ‘austerity’ upon the Icelandic people to ensure that EU banks were kept whole on their Icelandic investments.

Being outside the EU and being one of the most freedom-loving peoples in the world, with a proud history of North Atlantic island independence and a record of cocking a snook at the powers of the world — including defeating the Royal Navy in 1976 — the Icelandic people refused to bow their collective knees to their feeble quisling government and their government’s would-be overlords at the EU; they defaulted instead on their banking system’s enormous debts, much to the anger of the technocrats in Belgium.

Meanwhile, back within the hallowed holy borders of the EU, the overlords of the Holy Roman Empire of Brussels have insisted that the Irish people suck up austerity and stop complaining, because this will:

Help prevent a terminal crisis for the glorious Euro project

Help prevent German and French banks collapsing

Help their satrap quislings in Dublin and their divine overlords in Brussels keep living the high life

You’ll notice that there’s little in the above package for the actual Irish people themselves.

However, because they allowed themselves to get ruled over by some of the stupidest politicians and most Machiavellian bankers in global history (and let’s not even talk about corruption and greed), this means in the explicit EU view, that the Irish people deserve to take their imposed punishment of austerity.

But is this divinely-directed EU edict written in French on tablets of Lapis Lazuli and then copied out in triplicate in Danish, German, and Greek? Or is it in any way modifiable?

Unfortunately for the EU, the Irish people also have a proud history of North Atlantic island independence, not unlike that of Iceland, which is also a lot closer to Ireland than it is to Belgium. This relative success of the Icelandic default, compared to the upcoming agony of austerity for the tax serfs of Ireland, is something that is also quite clearly visible from the north-western shores of County Donegal.

So in this latest King World News interview, Jim Rickards asks the question: What if the Irish people refuse to suck it up? What if they do what Iceland did and tell the EU and its tottering banks to take a hike? What happens next?

Personally, as Daniel Hannan reported, I think this is an unlikely outcome, because most people in Ireland still perhaps accept their political system — for its legion faults — and all of the politicians in Ireland still want to suck up to the EU, for whatever reason. But what if the Irish do default and overcome the selfish personal interests of their politicians?

We certainly do live in interesting times and that is perhaps an interesting question.

If you would like to listen to the interview, which also discusses the honestfinancial assessments of Mervyn King, plus the situation in the metals markets, then click through either of the links below.